EUR/USD Daily Forecast – Euro Tries To Gain Ground At The Start Of The Week
EUR/USD Video 15.02.21.
Resistance At 1.2130 Remains Strong
EUR/USD remains stuck near the resistance at 1.2130 while the U.S. dollar is losing ground against a broad basket of currencies.
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The U.S. Dollar Index is currently testing the nearest support level at 90.30. This support level has already been tested several times in recent trading sessions and proved its strength. If the U.S. Dollar Index settles below this level, it will gain additional downside momentum which will be bullish for EUR/USD.
Today, foreign exchange market traders will focus on economic data from the EU. Analysts expect that Euro Area Industrial Production declined by 1% month-over-month in December after growing by 2.5% in November. On a year-over-year basis, Industrial Production is projected to decline by 0.3%.
The current weakness of the European economy put material pressure on the euro in recent weeks, although the European currency managed to rebound from lows. Stronger economic data may provide significant support to euro as the market sentiment remains bullish for riskier assets.
Technical Analysis
EUR/USD continues its attempts to settle above the nearest resistance level at 1.2130. This resistance level has already been tested many times, and all recent attempts to settle above 1.2130 yielded no results.
If EUR/USD manages to settle above 1.2130, it will move towards the next resistance level at 1.2155. A successful test of this level will push EUR/USD towards the next resistance at 1.2175. In case EUR/USD gets above the resistance at 1.2175, it will gain additional upside momentum and head towards the next resistance level which is located at 1.2220.
On the support side, the technical picture has not changed in recent days. The nearest support level for EUR/USD is located at the 50 EMA at 1.2105. If EUR/USD declines below the 50 EMA, it will head towards the next support level which is located at 1.2080. A move below this support level will push EUR/USD towards the support at 1.2060.
For a look at all of today’s economic events, check out our economic calendar.